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Killian Corp. has a residual income of $39,000 on invested assets of $453,000. If the hurdle rate is 10%, what is the operati
Return on investment can be calculated as: Multiple Choice o average invested assets/sales revenue. average 0 operating incom
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Answer #1
Killian Corp.
Operating income = Residual income + ( Invested assets * Hurdle rate ) = 39000 + ( 453000 * 10% ) 84300
Return on investment can be calculated as : Operating income / Average invested assets
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